Orthofix Medical (OFIX) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $207.9M, up 1.1% reported; pro forma sales grew 2.3% in constant currency. Limb Reconstruction and Therapeutic Solutions growth offset weaker Spine performance.

• Net loss was $6.1M and adjusted EBITDA was $26.0M. Priorities include improving U.S. Spine execution, margins, working capital efficiency and free cash flow.

Financial highlights

• Q3 reported net sales were $207.9M versus $205.6M a year earlier; adjusted EBITDA was $26.0M versus $24.6M.

• GAAP operating income was $1.5M versus an operating loss of $17.0M; net loss narrowed to $6.1M from $22.8M, or $0.15 versus $0.57 loss per diluted share.

• Nine-month net sales were $615.5M versus $602.4M; net loss narrowed to $42.8M from $90.0M.

• Q3 gross profit was $146.5M, down 1.3%; GAAP gross margin was 70.5% versus 72.2% a year earlier.

• Q3 SG&A fell $22.8M to $125.3M, mainly due to lower legal-related costs and commissions.

Outlook and guidance

• FY2026 guidance was reduced to net sales of $825M–$830M from $845M–$855M and adjusted EBITDA of $86M–$88M from $95M–$98M; ranges assume current FX rates.

• Sales outlook reflects Q3 results, Spine market softness and execution actions, international Limb Reconstruction order timing, and FX headwinds.

• Q4 sequential growth is expected from seasonality and European distributor inventory purchases; most of the arrangement’s ~$15M 2026 sales benefit is expected in Q4.

• Core revenue is expected to be positive in 2027 excluding MDR effects; European spine MDR requirements are expected to create a $22M 2027 net sales headwind from revenue-recognition timing.